Noreco Sells Norwegian Petroleum Activities
Norwegian Energy Company ASA (‘Noreco’) announces that its fully owned subsidiary Noreco Norway AS (Noreco Norway) has entered into a Sale and Purchase Agreement (‘SPA’) with Djerv Energi AS (‘Djerv’) for the sale of its exploration licence interests, organisation and management systems. The owners of Djerv will be a US based investment fund (70%) and Noreco (30%).
The owners of Djerv will subscribe on equal terms prorata in a primary offering, to ensure that the company is funded for known commitments.
Additionally, Noreco Norway has entered into an SPA to transfer its 4.36% participating interest in the Enoch licence to CapeOmega AS.
Subject to completions, the proposed transactions will lead to a subsequent ceasing of all of Noreco Norway’s petroleum activities. Added to the proceeds from the Oselvar sale this is expected to result in an estimated recovery of approximately 90% of the initial principal amount under the NOR06 bond issue.
The proposed transactions are conditional upon approvals by the Norwegian ministries; Ministry of Petroleum and Energy and Ministry of Finance. Additionally, the transaction entered into with Djerv is conditional on approval from NOR06 bondholders.
